February 2012 net worth update (+1.2%)

Since I didn’t close on the condo, I was finally able to re-arrange the funds out of my brokerage account that were sitting around from the stock vest last month. I used that money to replenish some of the buckets that I had borrowed money from the form the down payment (emergency reserves, vehicle replacement savings, and taxable investments). I finished replenishing those buckets when the earnest money was refunded to me later.

Cash: $9,500 (down $900 or -8.7%)

There were a lot of moving expenses this month, but those mostly came out of my general reserves, which I then replenished with the refund of my earnest money deposit. I also took a vacation in February and my vacation savings account is included in the Cash number.

Savings: $90,100 (up $3,600 or +4.2%)

  • Vehicle replacement: $3,500
  • Down payment: $62,600
  • Reserves: $24,000
    • Auto insurance deductible: $1,000
    • Health insurance deductible: $900
    • Renter’s insurance deductible: $500
    • General: $21,600 (6 months expenses at $3,600 per month)

I collapsed the appliances replacement savings goal since I moved to an apartment and have no appliances to replace at the moment. I will start that up again and create an online savings account for it after I buy a place.

I paid for my moving expenses out of my general reserves this month and I have also been paying for my health insurance costs out of my health insurance deductible reserves. With my March paycheck, I will start replenishing the health insurance reserves back up to what my employer and my FSA won’t cover of my potential expenses.

Some of my reserves are kept in my dividend rewards checking account, with the rest of my savings being in targeted accounts at an online bank. I have about 6 months in emergency reserves, as well as funds set aside to replace my car and the money for a down payment on a condo. Until I put an offer in on a different condo, I will be using a savings snowball and sending all future savings amounts to the down payment fund. This month, that amount was $1,700 after sending $250 to my new online vehicle replacement savings account.

Investments: $48,400 (down $1,000 or -2.0%)

Another month, another 401(k) contribution towards maxing it out. I am now 1/6 of the way towards maxing out my 401(k) account for the 2012 year!

The ~$5,400 that I borrowed from my taxable investment accounts to form my down payment is now in my Vanguard money market account. I’m going to leave these funds in cash until after I make a real estate purchase this year, in case I need to borrow the funds again so I don’t incur any capital gains doing so. This grouping went down since I moved about $3,900 to savings from my brokerage account.

This includes my Roth and Traditional 401(k), my Roth IRA, and my taxable investments. I also include the employer matching in my 401(k) since I don’t plan on leaving my employer until the 401(k) matching has vested. Obviously if I did lose the matching, that would be reflected in my net worth in the month that I left my employer. Per my 2012 financial goals, I plan on maxing out my Roth IRA contributions for 2012 at $5,000 (as I did in 2010 and 2011) and I am en route to maxing out my Traditional 401(k) and receiving the maximum match amount from my employer.

TOTAL: $148,000 (up $1,700 or +1.2%)

I started 2012 out with a net worth of $132,500.00, so I’ve seen a change of $15,500 or +11.7% so far this year.

Overall, February wasn’t a bad month. The markets rebounded a bit, which helped to cover up how much money I spent on moving costs. I’m very glad that I came out of the condo mess in a pretty okay situation and hopefully March is a little less hectic! I am very happy with the $1,800 net worth increase, considering how much money I spent this month.

My average monthly spending in 2011 including travel and medical coinsurance was about $3,300. In February of 2012, I spent $6,000 including travel and medical coinsurance. Wow. That number is scary. I am really, really glad (and surprised) that I managed to come out positive this month with spending that much. What was so crazy about my spending in February?

  1. Overlapping rent
  2. Moving company and moving supplies
  3. Security deposit and application fee at the new apartment
  4. Booking some vacations and taking one
  5. Income tax preparation
  6. Extra social eating due to moving and my kitchen stuff being all packed up
  7. Health insurance out of pocket bills since I’ve burned through my FSA – I only have one more month on the plan year (March), so this should get better.
  8. Replacing some small electronics that weren’t holding a charge any more
  9. Upfront sports tournament costs that I will get reimbursed from my teammates for later

These are all things that had to happen and will not be consistent expenses. My spending in March should be back down to a more normal level of around $3,400.


7 thoughts on “February 2012 net worth update (+1.2%)

  1. You had a huge spending month yet your net worth still went up; Nice work! Glad you were able to get a vacation in there as well!

    • Yup, I spent pretty much my whole net income for the month (direct deposit amount + 401(k) contribution + employer match), but my investments saw a lot of gains, which covered up the high level of spending. That vacation was definitely needed!

  2. I’m so glad you had a vacation, sounds as though you really needed one. It’s healthy to spend your whole net income every once in awhile!

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